March 4: Vietnam gold falls but Dollar rises

Local gold prices on March 4 fell over VND100,000 a tael despite global gold prices were steady, dollar rose over VND100.

As of 16:00 Hanoi time, Sacombank-SBJ gold as listed at VND37.51 million/tael and VND37.59 million/tael for bid and ask, respectively, up VND130,000 from that of yesterday.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND37.52 million/tael and VND37.62 million/tael for bid and ask, respectively, changed VND100,000 from yesterday level.

SJC in Hanoi was listed at VND37.55 million/tael and VND37.65 million/tael for bid and ask, respectively, meanwhile, SJC in HCMC was listed at VND37.55 million/tael and VND37.63 milllion/tael for bid and ask, respectively.

In Euro trade this afternoon, spot gold held steady at $1,417.89 an ounce, poised for a minor gain of 0.6 percent after a choppy week. U.S. gold futures also inched up 0.2 percent at $1,418.60 an ounce.

Gold is seen consolidating around current levels, as investors who hold bullish views on bullion take advantage of the price fall in the previous session.

“Inflationary fears globally will remain for the medium-long term, especially as inflation in large developing economies such as China, India and Brazil is already running high,” said Li Ning, an analyst at Shanghai CIFCO Futures.

She warned, however, some correction could take place after gold’s strong rally over the past month or so. But, she said, gold should find strong support at the $1,400 level.

Technical analysis showed that gold might be embarking on a correction which could extend to $1,374 next week, according to Reuters market analyst Wang Tao.

In local money market, dollars are quoted at VND21,700 –VND 21,708 for bids and ask respectively, up nearly VND100 from the same time yesterday.

The dollar gained after Vietnam’s central bank issued an official document confirming dong deposit interest rate cap of 14%, making it more attractive to deposit dollar, analysts say. – Stoxplus.com

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices